General Motors Co. plans to file its initial public offering in mid-August, a source familiar with the situation said on Friday.

General Motors is also in talks with banks for a revolving line of credit worth $5 billion. Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley each have agreed to provide $500 million worth of credit.

The credit line is expected to be finalized within the next two weeks, about a month before the automaker files for its IPO, the source said. Earlier media reports said the IPO filing was expected in early July.

GM is more likely to cut the valuation on the IPO rather than delay it, said the source, who requested anonymity because the talks are confidential.

The U.S. Treasury plans to sell $10 billion to $12 billion in shares. GM isn’t expected to sell shares, but plans to sell about $3 billion in mandatory convertible notes, the source said. Proceeds from the IPO are expected to be used to repay debt and fund GM's pension liability, the source said.

The full underwriting syndicate hasn't been decided.